Labour System
Increasing incomes by improving access to better paying wage employment
The burgeoning labour supply in Addis Ababa is far outpacing job creation, and this gap continues to widen due to increasing urban migration. However, despite chronic unemployment overall, there are specific jobs for which the supply of labour is not effectively addressing demand. While this could equate to employment opportunities for poor women and youth, these groups face systemic disadvantages in accessing jobs compared to other groups.
Critical Constraints
We identified critical constraints with the greatest potential for sustainable change and impact at scale
Lack of appropriate and effective labour exchange infrastructure for the target group to access job information and job matching
Lack of pro-poor childcare options to enable women to participate in the workforce
Employers’ lack of trust and perception of risk related to youth who don’t have accepted forms of verification such as ID, certifications, and references
Intervention Focus areas
We are focused on the following intervention areas to address the critical constraints
Innovative solutions to improve access to job information for the target group such as appropriately located digital job boards, mobile technology, and call centres
Development of physical and online platforms to improve domestic and overseas job matching for low- and semi-skilled workers
New models to reduce childcare costs and increase women’s participation in the workforce such as use of surplus public space, public private partnerships, and franchise models
Policy and regulation reform to create an enabling environment for pro-poor childcare services
Alternative ways to verify identity, skills, and trustworthiness for employment such as KYC (Know Your Customer), third-party skills testing, and mechanisms to build institutional trust
New insurance mechanisms to alleviate employer risk concerns such as employer liability insurance and employment bonds
System Lead: Mercy Corps
Other focus systems
Micro & small
enterprise (mse)
system
Reducing barriers to business entry and growth and stimulating innovation
Medium & large
enterprise (mle)
system
Creating more and higher paying jobs through growth of medium and large manufacturers
Skills
system
Improving skills development to unlock wage and self-employment opportunities